Chapter 6-Homework Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc. manufactures and sells a variety of commeraial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each ternitory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson: Northeast Southwest Rene Steve Colleen Paul Average per unit: $13,700 $15,400 $9,100 $18,100 $8,220 $8,932 $5,460 $10,136 8% Sales price Variable cost of goods sold Commission rate Units sold Manufacturing margin ratio 7% 32 40% 13% 25 42% 12% 38 40% 44% a. 1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson. If required, round contribution margin ratio to one decimal place. Havasu Off-Road Inc Contribution Margin by Salesperson Rene Steve Colleen Paul Chapter 6-Homework a. 1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson. If required, round contribution margin ratio to one decimal place. Havasu Off-Road Inc Contribution Margin by Salesperson Rene Steve Colleen Paul Contrbution margin ratio a. 2. Interpret the report. Paul earns the This is because he sells the product mix with a average manufacturing margin but at a contribution margin ratio among the four salespersons. Although Rene has a high variable cost of goods sold and also sells products with a contribution margin and has the contribution margin ratio. units, has a V commission rate, and sells a manufacturing margin. Steve also sells products with a commission rate. Colleen has the average sales price per unit, she has the second total contribution margin. Chapter 6 -Homework total contribution margin. b. 1. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a percent, rounded to one decimal place. Havasu Off-Road Inc. Contribution Margin by Territory Northeast Southwest de tl 0% Contrbution margin ratio b. 2. Interpret the report. The Southwest Region has more sales andmore contrbution maroin. in the Southwest Region, the salesperson with the highest sales unit volume, has the The Southwest Region has the contribution margin ratio. Y performance, even though it also has the salesperson with the contribution margin and contribution margin ratio. The Northeast Region contribution margin is than the Southwest Region because of the outstanding performance of Novt